Peak Re expands Lion Rock Re sidecar in 'challenging market'

Hong Kong-based reinsurer Peak Re has renewed its reinsurance sidecar  Lion Rock Re, having secured $107 million from investors in a "challenging market".

The company announced that it has completed its third successive reinsurance sidecar transaction via its Bermuda-domiciled special purpose insurer.

In collaboration with Aon Capital Partners, Aon Securities acted as the structuring and placement agent for the transaction.

Peak Re first ventured into the insurance-linked securities (ILS) market with its Lion Rock Re sidecar structure in 2018, which was the first reinsurance sidecar from an Asia-based sponsor.

In January 2020, it renewed its Lion Rock Re II sidecar with an upsized volume of $77 million.

Franz Josef Hahn, chief executive officer of Peak Re, said: “ILS has become an integral part of Peak Re’s retrocession strategy, and we have been building up our ILS capabilities since the launch of the first sidecar vehicle in 2018. We will continue to provide innovative options for investors and bring more capacity to narrow the protection gap in the emerging middle-class society in Asia.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.